US Advertisers Are Investing Heavily in Programmatic, but Obstacles Remain - eMarketer
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US Advertisers Are Investing Heavily in Programmatic, but Obstacles Remain

Programmatic advertising accounts for more than half of US digital display ad spending

March 29, 2016 | Marketing Technology | Media Buying

Programmatic advertising, an automated method of buying, selling or fulfilling advertising, already accounts for more than half of US digital display ad spending. Rapid growth and adoption of programmatic advertising in areas such as video and mobile are trends in their own right, but they aren't the only advancements buyers and sellers need to know about when it comes to ad automation, as explored in the new eMarketer report, “US Programmatic Advertising: Seven Things Buyers and Sellers Need to Know Now.”

Percent of Digital Ad Budget Allocated to Programmatic According to US Marketers, 2013-2015 (% of respondents)

Programmatic's presence isn’t just felt at the broader digital display level—it has now become a common way to procure both mobile and video display ad buying.

A January 2016 survey by retargeting and performance marketing firm AdRoll suggests how investments might play out at the company level. Last year, the bulk of US marketers, 62%, automated 10% to 50% of their digital ad budgets. However, almost a third invested 50% or more of their digital ad budgets programmatically, up from just 7% in 2013.

In addition to the growing comfort among buyers and sellers with programmatic technology, several other factors are also contributing to rapid adoption across a variety of channels and ad formats. These include programmatic’s undeniable efficiency, its unparalleled ability to pair rich audience data with ad inventory and its improved audience-targeting capabilities beyond cookie-based devices.

Problems with Programmatic Advertising According to US Senior Ad Buyers, Dec 2015 (% of respondents)

While US advertisers are investing heavily in programmatic, significant obstacles remain. A December 2015 survey found multidevice measurement, fraud and ad blocking were the top problems plaguing US advertisers.

And issues of ad quality, namely fraud and viewability, will also continue to plague buyers and sellers. While greater standards and resolution might be on the horizon, added issues such as ad blocking remain unresolved.

eMarketer corporate subscription clients can view the full report here.

Get more on this topic with the full eMarketer report, “US Programmatic Advertising: Seven Things Buyers and Sellers Need to Know Now.”

eMarketer releases over 200 analyst reports per year, which are only available to eMarketer corporate subscribers.

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